Financial Data and Key Metrics Changes - Same store occupancy reached 94.6%, up 60 basis points year over year and 120 basis points sequentially from the first quarter [7] - Same store revenue growth was flat in the quarter, but there was positive year over year rate growth for new customers for the first time since March 2022 [8][11] - Core FFO guidance for the full year is maintained at $8.15 per share, with same store revenue growth anticipated between negative 0.5% and positive 1% for the full year [11][18] Business Line Data and Key Metrics Changes - The company completed one acquisition for $12 million and bought out two joint venture partners' interests in 27 properties for $326 million [9] - The bridge loan program generated $158 million in new originations, while the third-party management program added 93 stores, expanding the managed portfolio to 1,749 stores [9][10] Market Data and Key Metrics Changes - The self-storage sector continues to show resilience, with geographic diversification helping to offset softer conditions in certain regions [10] - New customer rates improved year over year by over 2% in July, indicating positive trends [22] Company Strategy and Development Direction - The company is focused on balancing pricing and occupancy to maximize revenue while pursuing strategic growth to enhance long-term shareholder value [11] - A multichannel approach combining opportunistic acquisitions and capital-light activities is being employed to create value regardless of market conditions [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term revenue growth remains muted, operational discipline and investment strategy position the company well to navigate current conditions [11] - The company is optimistic about gradually improving fundamentals and expects potential acceleration in revenue growth in the second half of the year, particularly in the fourth quarter [18] Other Important Information - Same store expenses increased by 8.6%, primarily due to higher property taxes in certain states [16] - The company maintains 89% of its debt at fixed rates, with a weighted average interest rate of 4.4% and an average maturity of 4.3 years [17] Q&A Session Summary Question: Update on street rates and occupancy trends - Occupancy remained flat at 94.6% in July, with new customer rates up over 2% year over year [22] Question: Factors affecting gradual rate improvement - It takes time for positive new customer rates to flow through to revenue, with a gradual build-up expected [24] Question: Impact of LSI portfolio on same store performance - The LSI portfolio is performing as expected, with rates improving faster than Extra Space rates [37] Question: Expectations for same store revenue growth - Same store revenue growth is expected to be slightly positive in the back half of the year, with potential acceleration in the fourth quarter [44] Question: Insights on property tax expenses - Property tax increases are expected to normalize in the second half of the year [51] Question: Demand and market health - Demand is steady, and the company is capturing a disproportionate share of the market, with occupancy levels indicating a healthy market [56] Question: Future of bridge loan products - Demand for bridge loans remains strong, with no imminent paybacks expected from preferred holders [62] Question: Disposition strategy for LSI assets - The company is disposing of 22 former LSI properties to optimize the portfolio [65] Question: Market performance in NYC and Chicago - NYC saw modestly negative same store revenue, while Chicago experienced acceleration in revenue progress [71] Question: Housing market impact on storage demand - A strong housing market would be beneficial but is not necessary for recovery [75] Question: Seasonal expectations for leasing - The company expects the second half of the year to align with prior expectations, maintaining higher occupancy levels [81] Question: Customer behavior and ECRI acceptance - Existing customers are staying longer, with bad debt below 2%, indicating a healthy customer base [83] Question: Competitive dynamics in acquisition market - The company remains active in evaluating acquisition opportunities but will only pursue deals that are accretive [105]